FRI AM News: WisBusiness: the Podcast with Rick Latella, Samaritan Shield; OCI working on pilot assessing use of AI by insurance industry

— This week’s episode of “WisBusiness: the Podcast” is with Rick Latella, president of Samaritan Shield. 

Latella, an entrepreneur and former engineer for Motorola, is a graduate of the Milwaukee-based Water Council’s BREW startup accelerator program. He discusses his Illinois company’s ties to Wisconsin through distributors and contract manufacturers, as well as his experience with developing its products. 

Samaritan Shield sells a surface cleaning and protectant agent, based on a zinc-based material that was developed for use in sensitive environments such as hospitals, nursing homes, daycare centers and more. It can be widely used for various applications, including cleaning electronics. 

“Basically what we thought was, there’s got to be a better way of cleaning surfaces without degrading the surface of the thing you’re cleaning,” Latella said. 

Along with its cleaning applications, the company’s agent is also used in water purification applications. 

He discusses the scientific process that went into developing the agent and later testing it through universities and other third-party groups, as well as the company’s current approach to marketing to businesses. Latella aims to expand with distributors to hospitals, as well as the possibility of international sales. 

“We’re looking to grow from that perspective,” he said, adding “I do know that there’s an awful lot of people out there that are looking for something green that they can feel safe around their children and their pets.” 

Latella also notes the company was “lucky enough to be able to work with students” at UW-Whitewater and a biosciences teacher there who helped out with validation and testing. 

“They’ve done some posters, so we’ve supported this work and they’ve supported our work,” he said. 

Listen to the podcast here and see the full list of WisBusiness podcasts

— Wisconsin’s insurance regulators are advancing a pilot project assessing the use of AI by insurers and related risks. 

Speaking yesterday during a meeting of the 2026 Legislative Council Study Committee on the Use of Artificial Intelligence in Health Care, an advisor to the state Office of the Commissioner of Insurance highlighted goals of the AI Risk Evaluation Supplement. 

Coral Manning, policy initiatives advisor for OCI, said the supplement was first drafted last year and has gone through five iterations to reach its current firm. 

“It’s really a tool to allow us as regulators to understand how insurance carriers are using AI, and to make sure that they have effective governance in place to mitigate the risk,” Manning said yesterday. 

In addition to providing a structure for regulators to review AI systems and give insurers a way to show they’re in compliance with existing laws, the effort aims to provide more education to regulators about the shifting landscape. 

“As you can imagine, it’s such an ever-changing field that something that we try to do continuing education on for our carriers this year might be out of date in six months or a year,” she said. 

OCI is asking insurers to quantify their use of AI, to get a handle on how many different models and systems are being used in the main regulated areas of insurance such as ratemaking and claims processing. While this differs substantially between companies — ranging from a dozen AI uses to thousands for a given company — the project is developing a “big picture” look at the sector. 

Meanwhile, the agency is taking a closer look at applications that “pose a potentially higher risk,” looking at specific development parameters and underlying data being used in the AI models. For example, insurers might be using an AI tool to review satellite imagery to check if an addition was added to a property, flagging possible changes to be reviewed by a person. 

“What we want to make sure though as a regulator is that not just … that they’re using the satellite imagery and there’s a human in the loop, but that they were making sure the tool wasn’t disproportionately flagging properties that are low-income, properties that are rural, properties that are in some other category that may cause a person to be treated differently,” Manning said. 

The project is being done through the National Association of Insurance Commissioners and involves 12 states in total, covering companies in health, property, casualty and life insurance segments. It’s been running since March and wraps up at the end of this month. 

Organizers will hold a public comment period in October, with a goal of adopting an updated version of the supplement for implementation at the next national meeting of NAIC in November. 

Wisconsin Insurance Commissioner Nathan Hodek said project partners aren’t yet at a point to advocate for new laws or regulations around AI in healthcare, but added the project will help pinpoint potential risks and set a framework for regulatory efforts to come. 

At the same time, efforts are advancing through the NAIC to update what’s called the Privacy Protection Model Act, Hodek said. 

“We’re hoping if that update is completed through the NAIC process this year, that states including Wisconsin could look at introducing that and having that model potentially adopted here in the state,” he said. 

As part of the push to better understand and regulate AI in the insurance space, regulators are facing issues with third-party vendor data. Because insurance companies often contract out data or AI-related services, agencies like OCI “should be able to regulate that activity as well,” Hodek said. But that’s turned out to be a difficult prospect. 

“We’re running into some challenges with that, where the insurers just aren’t able to get answers from the third-party vendors,” Hodek said. “Sometimes the third-party vendors are frankly just so big they feel like they don’t have to comply with what the insurers are asking for.” 

While he said there’s been discussions around creating a reporting requirement or direct oversight for third-party data in insurance, “that’s very much in infancy” at this point. 

See more coverage. 

Watch the video. 

— Gubernatorial candidates David Crowley and Tom Tiffany are now both on record opposing a proposed extra-high-voltage transmission line that would run through the Driftless region. 

Crowley announced his opposition yesterday morning, while Tiffany has previously come out against the project, which is part of a larger buildout of the regional electric grid by the Midcontinent Independent System Operator. Tiffany is scheduled to speak in the Wisconsin Dells Sept. 18 to a group opposed to the project. 

Tiffany said in a statement that he doesn’t support “carving new transmission” lines through farmland when there are reasonable alternatives. 

“Wisconsin should not become a web of massive transmission lines crisscrossing our farmland because politicians failed to build reliable power right here at home,” he said. 

Midcontinent Grid Solutions has said it plans to submit its application to state regulators for a construction permit on the 190-mile, 765-kV line in early 2027. 

There is growing opposition to the plan, with a bipartisan group of lawmakers yesterday asking MGS to postpone its filing until the developer can hold a new round of open house meetings in the spring to get more public input. U.S. Rep. Derrick Van Orden, R-Prairie du Chien, has also expressed opposition to routing the line through the Driftless region. 

Crowley said the state “must fully consider less disruptive alternatives.” 

“Wisconsin needs a reliable, affordable, and clean energy future, but that future cannot come at the expense of our local communities or the Driftless Region as a whole,” Crowley said. 

— Prediction market operator Underdog has sued Wisconsin and four other states seeking permanent injunctions against state gaming regulators. 

It was just one of the latest developments in the back-and-forth legal proceedings between states and prediction markets. 

Over the past week, Robinhood Markets agreed to stop offering sports event contracts in Michigan. And the U.S. Court of Appeals for the Second Circuit agreed to hear Coinbase’s motion for injunction pending appeal against Connecticut at the same time as Kalshi’s same motions Connecticut and New York. 

Underdog on Tuesday filed lawsuits in federal courts against Massachusetts, New Mexico, Ohio, Washington and Wisconsin seeking permanent injunctions to prevent state gaming regulators from enforcing their gambling laws against the company. 

Underdog was the first sports gaming operator to launch a prediction market product. It initially did so through a partnership with Crypto.com in September 2025 and immediately came into throes with state regulators. 

Days after its launch, the Arizona Department of Gaming warned the company against offering event contracts or partnering with another company that does so. The department had months earlier issued cease-and-desist orders against Crypto.com and two other prediction market operators.

In December, the department announced its intent to revoke Underdog’s daily fantasy license due to its prediction market offerings. A spokesperson for the department said Wednesday that no final decision has been made and the process remains ongoing. The company currently maintains its license.

In July, Underdog launched its own exchange, licensed by the Commodity Futures Trading Commission, that was available in 39 states and the District of Columbia. At launch, it did not offer prediction market access in Arizona, Colorado, Kentucky, Maryland, Massachusetts, Michigan, Mississippi, Nevada, New Jersey, Ohio, Pennsylvania and Tennessee.

Stacie Stern, senior vice president for government affairs and partnerships at Underdog, told State Affairs the company is licensed by the federal government to offer markets and takes its responsibility seriously to comply with the regulations. 

“Do we believe we are right on the law? Yes. Do we accept that these state gaming boards believe they are right on the law? Yes. We’ve worked with them, we respect them, and we didn’t want to sue, but sometimes it’s the only way to resolve a dispute,” Stern said. 

See the full story. 

— Union workers at Foremost Farms in Reedsburg have ratified a new four-year contract, Teamsters Local 120 announced, touting a 27% wage increase and expanded benefits for employees. 

Yesterday’s announcement comes after the union last month said workers at the Reedsburg butter production facility had voted to authorize a strike amid contract negotiations. 

The earlier release said the company was failing to address “chronic staffing problems” as well as concerns about wages and retirement security while seeking “concessions that would weaken existing overtime” and attendance protections. 

Foremost Farms did not immediately respond to a request for comment on the contract being signed. 

Shaun Mullikin, business agent for Teamsters Local 120, says members “remained united throughout negotiations” and refused to settle. 

“This contract is a testament to the strength and solidarity of our members … Our bargaining committee did a terrific job delivering an agreement that will make a lasting difference for members and their families,” Mullikin said in a statement. 

Along with the pay raise and “improved benefits,” the union says the new contract includes stronger workplace protections for workers, retroactive pay, more vacation time, more overtime protections, preserved health coverage and more. 

Another win for the union is “strong successor language” to keep various provisions in place in case the plant is sold or transferred, or ownership otherwise changes, according to yesterday’s release. 

See the release. 

— WEDC is providing up to $90,000 in state income tax credits to AirPro for a $1 million expansion of the manufacturer’s Rhinelander production facility. 

The Wisconsin Economic Development Corp. yesterday announced its support for the project, which aims to “streamline” the manufacturing process for the industrial fan and blower production site and cut down on transportation between facilities. The project is expected to create 18 new jobs. 

AirPro can earn the tax credits from WEDC over a three-year period by hitting job creation and capital investment milestones during that period. 

Matthew Parsons, an accountant for the company, says the new equipment it’s purchasing will help it ship orders without delays. 

“We believe being on time is important, so if we have a ship date, we want to hit it,” he said in the release. 

See more on the project. 

— The Medical College of Wisconsin’s Advancing a Healthier Wisconsin Endowment is offering $250,000 grants for health improvement projects, the college announced. 

Funding from the endowment’s Community-Led Momentum Grants program can go to 501(c)(3) and 501(c)(6) nonprofits or government entities in the state that apply alongside an eligible MCW faculty member. Grants will cover project expenses for a two-year period starting in July 2027. 

The endowment is requesting letters of intent by Oct. 26, followed by a merit review and invitations to provide full proposals by Feb. 22. 

See more details. 

For more of the most relevant health care news, reports on groundbreaking research in Wisconsin, links to top stories and more, sign up today for the free daily Health Care Report from WisPolitics and WisBusiness.com. 

Sign up here. 

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ENTERTAINMENT & THE ARTS

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FOOD & BEVERAGE

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HEALTH CARE 

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LEGAL 

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– Warrantless Flock use across Waukesha County is unconstitutional, lawsuit says 

POLITICS 

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– Where Tom Tiffany, David Crowley stand on marijuana legalization, hemp 

REAL ESTATE 

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SPORTS 

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TRANSPORTATION 

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PRESS RELEASES

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Wisconsin Economic Development Corp.: Investing in the Northwoods’ future

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